Her understanding doesn't make him feel any better, he lost, there was no victory in this, but he knew better than to talk back to her. She seemed to be the one in power here, and it may be best to align himself with her in some way, something that cannot be done if he's constantly disagreeing with her. (Then again, that is pretty much how Merlin aligned himself with Arthur...)

"Thank you, I will graciously accept my prize, and I look forward to future tournaments."